Relocation procedure

Aims and purpose

The University will consider recompensing staff, at least in part, for the financial cost incurred by an individual required to relocate their permanent residence to within daily travelling distance of their University of Bath work location as a result of taking up a post.

This procedure describes the eligibility for assistance, details of the allowances which are covered and the procedure to follow for claiming relocation assistance.

Eligibility

Newly appointed staff may apply to receive assistance where they meet the following criteria:

• Their present home is more than 30 miles from their work location

• Their new home is within 30 miles of their  work location

• It must be a reasonable expectation that they would have to move house in order to take up employment in their new post at the University of Bath.

• The move of home is made.

Allowances

Actual expenses incurred in relocating from within the UK or from the Republic of Ireland will be reimbursed at the equivalent of one month’s gross salary of the newly appointed member of staff (at the time of taking up the appointment) or up to £1500, whichever is the greater.

Only expenses which fall within the H M Revenue and Customs guidelines below will be considered. 

Only expenses incurred in the tax year that the member of staff joins the University and the one following will be considered. The UK tax year is 6 April to 5 April. 

Where an individual is unclear as to whether an item may be claimed, then guidance should be sought from the Human Resources Recruitment Team, prior to expenditure being committed to.

The Head of Department should discuss exceptional cases and expenses relating to relocation from overseas with the Human Resources Manager.

Any proposed relocation to a new residence further than 30 miles from the employee’s work location must be agreed in advance by the Deputy Director of Human Resources or nominee.

Exclusions

A new member of staff will not be eligible to make a claim for assistance under the scheme if any other member of their household is claiming, or will be claiming, relocation expenses in connection with the move, either from the University or from any other source.

Requirement to repay expenses

In the event that a member of staff on a permanent contract resigns or is dismissedfrom his/her employment within 2 years of taking up appointment, he/she will be required to repay on a pro-rata basis any relocation assistance received from the University. This amount will decrease by 1/24 for every month of service completed.

Employees engaged on a fixed term appointment will be required to repay any relocation expenses on a pro rata basis if they resign or are dismissed before completing half the term of the contract.

If an expense is incurred and the move of residence does not occur the expense will have to be recovered over the same period it was paid.

Exemption from tax and National Insurance

HM Revenue and Customs allows tax and National Insurance exemption on relocation expenses within certain guidelines. Full information can be obtained from the HM Revenue and Customs Website. A summary of Revenue rules are provided below for general guidance, but as the Revenue may alter these from time to time, members of staff are advised to check with the Revenue for the most up to date regulations.   The University will not be responsible for any tax liabilities which may be incurred; these will be the responsibility of the individual.

A member of staff’s relocation allowance is exempt from tax (to a maximum of £8,000) and NI contributions as long as the following conditions are met:

• The member of staff has to move home to take up a new job

• The existing home is not within reasonable daily travelling distance

• The new home is within reasonable daily travelling distance

Expenses must be incurred, or the benefits provided, before the end of the tax year following the tax year in which the new job is started.

A tax year runs from 6th April in one year to 5th April the next.

Examples:                    Start date of new job:                Must use exemption by:

                                        1st March 2011                           5th April 2012

                                        1st September 2011                 5th April 2013

If the member of staff does not relocate within the Revenue timescales, in exceptional circumstances the University may still consider the payment of relocation expenses, so long as there is a genuine intention to move. The Deputy Director of Human Resources or nominee will make a decision on any such cases. Any monies paid outside of the Revenue rules however are likely to be subject to tax and NI by the Revenue, unless the tax office agrees to extend the time limit. Further information on the circumstances when the time limit may be extended can be found at the HMRC website.

Applying for relocation expenses

The following guidelines should be applied when making applications:

• Applications must be made on a Relocation Expenses Claim Form available from the HR website.

• Applications should be submitted to the Human Resources Recruitment Team.

• Claims must be accompanied by receipts for payments made, in the name of the employee, which show the company number/VAT number, but consideration will also be given to miscellaneous expenses where it is not possible to provide receipts. Such claims should give details of each item and the expenditure claimed. 

• Claims cannot be made in advance of the date on which appointment is taken up, and no advances will be made. 

• Separate forms should be used where different currencies are involved in the claim. 

• No payments will be made for claims submitted after an individual has given notice of resignation.

Acceptance